Mr. Alexander Langer reports

SIERRA MADRE ANNOUNCES EXTENSION TO FIRST MAJESTIC LOAN

Sierra Madre Gold and Silver Ltd. has amended the non-revolving, secured term loan in the amount of $5-million (U.S.) between the company and First Majestic Silver Corp.; please see Sierra Madre press release dated May 8, 2024, for details of the original loan announcement.

The loan now has a maturity date of May 7, 2027, which represents a 12-month extension of the original term, with no other changes. The loan bears interest at a rate of 15 per cent per annum with payments of interest only due monthly. In accordance with the original agreement, the company has deferred payment of the first six months of interest in the amount of $365,000 (U.S.), which is payable upon maturity of the loan. The company may repay the loan and accrued interest at any time, without penalty.

Alex Langer, Sierra Madre's president and chief executive officer, states: "We are very pleased about the extension of this loan and are grateful for First Majestic's ongoing support. This amendment is expected to provide the flexibility for Sierra Madre to potentially increase plant and mill capacity at our Guitarra silver-gold mine in Mexico's silver belt and also allow us expedite a district-wide exploration program."

Sierra Madre also announces that, pursuant to its stock option Plan, it has granted stock options to new employees of La Guitarra Compania Minera S.A. de C.V. and consultants of the company, to purchase an aggregate of 950,000 common shares of the company at the price of 69 cents per share for a period of five years from the grant date. The options will vest one-third immediately as of the date of grant; one-third six months after the date of the grant; and one-third 12 months after the date of the grant. This stock option grant is subject to acceptance by the TSX Venture Exchange.

About Sierra Madre Gold and Silver Ltd.

Sierra Madre Gold and Silver is a precious metals development and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500-tonne-per-day processing facility that operated until mid-2018 and restarted commercial production in January, 2025.

The 2,600-plus-hectare Tepic project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.

Sierra Madre's management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over $1-billion for mining companies.

We seek Safe Harbor.